NAR Anxious to See Stimulus Plan Enacted

Home sales will remain flat until Congress passes the economic stimulus bill that allows Fannie Mae and Freddie Mac to purchase jumbo mortgages, according to the National Association of Realtors. The Realtors are concerned that homebuyers in high-cost markets are sitting on the sidelines and waiting for Congress to increase the GSE loan limits to 125% of median home prices with a cap of $729,750. NAR also is concerned that operational problems could delay implementation and Fannie and Freddie will not be ready to stimulate sales during the spring home buying season. It would be "cleaner and faster" for the two government-sponsored enterprises to implement a $625,000 nationwide loan limit, NAR spokesman Walter Maloney said. Separately, GSE regulator James Lockhart told a Senate panel it will take Fannie and Freddie two months to set up the systems and models to purchase higher balance loans.